Germany's big three carmakers – BMW AG, Volkswagen AG and Daimler AG - which have added about EUR67 billion ($90 billion) in market value since the end of the 2009, are set for 2011 profits exceeding pre-financial crisis highs amid Chinese and United States demand.
Analysts say that BMW and VW will probably post earnings before interest and taxes for 2011 beating records set in 2007 and 2008, respectively, while Daimler’s earnings are expected to rise to the highest level since 1999, when Chrysler was still part of the company. Daimler's Mercedes-Benz, BMW and VW all reported record deliveries in January 2011.
Daimler CEO, Dieter Zetsche, who is the first of the German auto CEOs to discuss 2011 targets when he reports fourth-quarter earnings, said in January 2011 that growth in 2011 will be constrained by factory limits rather than customer demand.
Arndt Ellinghorst, a London-based Credit Suisse analyst said Mercedes and BMW have an order book that “they've never had before in their history” and they're looking at peak profits.
Buoyed by sales advances in the two largest auto markets – China and the U.S. - the three carmakers have a combined market value of EUR157 billion, up 75 percent from the end of 2009.
The world’s biggest automaker, Toyota Motor Corp., was almost unchanged in the period, while Ford Motor Co. was up about 61 percent. [via autonews - sub. required]